Non-food credit continued to be anaemic and loans grew at 11.87% year-on-year to R60,20,406 crore for the fortnight ended on August 8.

This is the slowest credit growth in over two years.

In FY14, credit growth had earlier hit a high of 18.2% y-o-y in the fortnight ended September 18.

Credit demand in 2013 had increased in August and September as the RBI had taken extraordinary liquidity tightening measures in July to stem the slide of the value of the rupee, which had hit a lifetime low of R68.825 in August against the dollar.

The tightening measures had pushed up interest rates on commercial papers (CP), making them costlier and hence companies looked at banks for their funding requirements. Bankers expect credit demand to pick up in the third quarter of FY15,

following a number of clearances of projects by the Cabinet Committee on Investments (CCI) in April.